STOCKHOLM (Standard&Poor's) Sept. 17, 2004--Standard&Poor's Ratings Services said today that the merger talks initiated between gas and energy company DONG A/S (A-/Stable/A-2) and electric utility Elsam A/S (A-/Stable/A-2), both based in Denmark, have no immediate ratings effect for either company. A move into the Danish electricity sector is already factored into the ratings on DONG. A merger with Elsam, instead of further cash acquisitions, would alleviate some of the financial weakening expected as a result of DONG's expansion strategy, while ensuring the expected benefits from forming a strong Danish energy company. The fact that the credit ratings on the two companies are equal would also suggest that a merger would have a neutral effect on their
